Power Mech Projects Ltd announced on January 8 that its wholly owned subsidiary, PM Green Private Ltd, has received a major order from West Bengal State Electricity Distribution Company Ltd (WBSEDCL) to establish battery energy storage facilities in West Bengal. The infrastructure firm secured this significant contract under a build-own-operate model with guaranteed off-take arrangements.

Project Details and Scope

The primary contract involves setting up a 250 MW/1,000 MWh standalone Battery Energy Storage System (BESS) at Goaltore, Paschim Medinipur, West Bengal. The order structure includes a 100% off-take guarantee from WBSEDCL, providing revenue certainty for the project.

Additionally, a greenshoe option of 250 MW/1,000 MWh is included for the Durgapur Project Ltd (DPL) campus in Durgapur, West Bengal. The combined order value, including the greenshoe option, reaches ₹3,126.00 crore, excluding GST.

Implementation Timeline and Services

The comprehensive scope of work covers design, finance, engineering, procurement, construction, operation, and maintenance of the BESS facilities at both sites. The project timeline is structured in two distinct phases.

The commissioning phase is scheduled for completion within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA). Following commissioning, the operation and maintenance period extends for 180 months, ensuring long-term revenue visibility for Power Mech Projects.

Corporate Structure and Compliance

The order has been awarded by WBSEDCL, a domestic entity, and is not classified as a related party transaction. The company confirmed that neither promoters nor group companies hold any interest in WBSEDCL, ensuring transparency in the contract award process.

Second Quarter Financial Performance

Power Mech Projects demonstrated strong financial performance in its second quarter results. The company's operational efficiency and revenue growth reflect its expanding market presence in the infrastructure sector.

The company reported an 11.70% year-on-year increase in net profit at ₹74.92 crore for the quarter ended September 2025, compared with ₹67.07 crore in the same period last year. Revenue rose 19.50% year-on-year to ₹1,237.80 crore from ₹1,035.40 crore. EBITDA increased 19.00% to ₹147.02 crore from ₹123.56 crore in the year-ago quarter, while the operating margin stood at 11.88% for the quarter, slightly lower than 11.94% in the year-ago period.

Market Performance

Shares of Power Mech Projects Ltd ended at ₹2,353.00, down by ₹44.00, or 1.84%, on the BSE, reflecting normal market fluctuations despite the positive business development.

Power Mech Projects has announced a major contract win from West Bengal State Electricity Distribution Company Limited (WBSEDCL) for a substantial energy storage project. This landmark achievement marks a significant milestone in the company's expansion into the renewable energy storage sector.

Project Specifications and Contract Value

The awarded project involves the development of a 250 MW/1,000 MWh energy storage system, representing one of the larger energy storage initiatives in the region. The contract structure includes both immediate implementation and future expansion possibilities.

Revenue Impact and Business Implications

The contract ensures immediate revenue of ₹1,563.00 crores for Power Mech Projects from the base 250 MW/1,000 MWh installation. The inclusion of a 1 GWh expansion option provides additional growth potential, with the total contract value potentially reaching ₹3,126.00 crores if the option is exercised.

Strategic Significance

This WBSEDCL contract represents a strategic entry into the energy storage market for Power Mech Projects. The project's scale and the involvement of a major state electricity distribution company highlight the growing importance of energy storage solutions in India's power sector infrastructure development.

The 250 MW/1,000 MWh capacity will contribute to grid stability and renewable energy integration capabilities in West Bengal. The project structure, with its expansion option, demonstrates WBSEDCL's confidence in both the technology solution and Power Mech Projects' execution capabilities.